Dalian and Singapore iron ore futures rose on Thursday, supported after the Chinese city of Zhengzhou said it would start building stalled housing projects, offering some relief to markets worried about weak steel demand in China.
Steel futures in Shanghai also advanced, though gains were capped amid concerns about intensifying COVID-19 restrictions in the world’s biggest steel producer and iron ore consumer.
The most-traded January iron ore on China’s Dalian Commodity Exchange climbed as much as 3 percent to 705 yuan ($101.19) a ton during morning trade.
On the Singapore Exchange, the steelmaking ingredient’s benchmark October contract was up 3.4 percent at $99.70 a ton.
Zhengzhou vowed to start building all stalled housing projects within 30 days, by making good use of special loans, asking developers to return misappropriated funds, and encouraging some real estate firms to file for bankruptcy, Reuters reported, citing three sources with knowledge of the matter.
Homebuyers in at least 80 cities in China have threatened to halt making mortgage payments as liquidity problems or COVID-19 restrictions hampered projects, adding to worries about an ailing property market. – Reuters
